Constructing aggregate environmental-economic indicators: a comparison of 12 OECD countries

The application of aggregate indicators in environmental-economic research has received little attention. An important reason is the incompleteness of environmental data. This article presents a systematic approach to constructing indicators of the environment and economy on a macro level. It includes a distinction into the following categories: the volume of economic activities as an indicator of potential environmental pressure; actual environmental pressure; environmental quality; and environmental policy. In each category aggregate indicators are calculated for 12 OECD countries, mostly based on data from 1993; and the correlation between these indicators is examined. Significant correlation is found between the economic activity indicators (or “potential” environmental pressure) and the actual environmental pressure and environmental quality, whereas a weak correlation exists with these indicators and two types of aggregate indicators of environmental policy. Because of some arbitrary choices, which are inevitable, the results must be judged with caution. Several suggestions are offered to improve the calculation and comparison of aggregate indicators

Trade and product innovations as sources for productivity increases: an empirical analysis

R&D, Innovation, Transaction costs, Total factor productivity, F10, F43, O47,

A composite leading indicator of the inflation cycle for the Euro area

We evaluate the performance of composite leading indicators of turning points of inflation in the Euro area, constructed by combining the techniques of Fourier analysis and Kalman filters with the National Bureau of Economic Research methodology. In addition, the study compares the empirical performance of Euro Simple Sum and Divisia monetary aggregates and provides a tentative answer to the issue of whether or not the UK should join the Euro area. Our findings suggest that, first, the cyclical pattern of the different composite leading indicators very closely reflect that of the inflation cycle for the Euro area; second, the empirical performance of the Euro Divisia is better than its Simple Sum counterpart and third, the UK is better out of the Euro area.